Resources

1. Decide how much home you can afford. Generally, you can afford a home equal in value to between 2 and 3 times your gross income.
2. Develop a wish list of what you'd like your home to have. Then prioritize the features on your list.
3. Select three or four neighborhoods you'd like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.
4. Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney's fee, and transfer fees average between 2 and 7 percent of the home price.
5. Get your credit in order. Obtain a copy of your credit report.
6. Determine how large a mortgage you can qualify for. Also explore different loans options and decide what's best for you.
7. Organize all the documentation a lender will need to preapprove you for a loan.
8. Do research to determine if you qualify for any special mortgage or downpayment assistance programs.
9. Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.
10. Find an experienced REALTOR® who can help you through the process.

• Assure that you see all the properties in the area that meet your criteria.
• Guide you through the entire home buying process, from finding homes to look at, to getting the best financing.
• Make sure you don't pay too much for your new home and help you avoid costly mistakes.
• Answer all of your questions about the local market area, including schools, neighborhoods, the local economy, and more.

• Check your credit rating. Straighten out any errors before it’s too late.
• Determine a comfortable monthly budget for your new purchase, including down payment and monthly payment.
• Find a loan program that meets your needs and get pre-qualified (preferably pre-approved).
• Choose a Real Estate Agent that you trust and who understands your needs.
• Determine what neighborhood best matches your needs.
• Identify important features you need your new home to have.

1. Be picky, but don't be unrealistic. There is no perfect home. Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you. Get your finances in order. Review your credit report and be sure you have enough money to cover your downpayment and your closing costs Don't wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking. Don't ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion. Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area? Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you'll buy as well as type of mortgage terms that suit you best. Don't let yourself be house poor. If you max yourself out to buy the biggest home you can afford, you'll have no money left for maintenance or decoration or to save money for other financial goals. Don't be naïve. Insist on a home inspection and if possible get a warranty from the seller to cover defects within one year.
2. Get help. Consider hiring a REALTOR® as a buyer's representative. Unlike a listing agent, whose first duty is to the seller, a buyer's representative is working only for you. And often, buyer's reps are paid out of the seller's commission payment.